Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

Apr 06, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The President of India on March 31, 2020, promulgated the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, to provide relaxation in the provisions of certain Acts and for matters connected therewith or incidental thereto.

Due to the spread of pandemic COVID-19, this Ordinance is promulgated to relax the provisions of certain Acts.

Ø  Relaxation of certain provisions of specified Act: Specified Act includes (Wealth-tax Act, 1957; Income-tax Act, 1962; Prohibition of Benami Property Transactions Act, 1988; Finance Act; Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015; Direct Tax Vivad se Vishwas Act, 2020.

1.       Where, anytime limit has been specified in, or prescribed or notified under, the specified Act which falls during the period from March 20, 2020 to June 29, 2020 or such other date after June 29, 2020 as the Central Government may, by notification, specify, for the completion or compliance of certain actions and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance in the specified Act, Stand extended to June 30, 2020 or such other date after June 30, 2020, as the Central Government may, by Notification specify:

2.       Where any du dates has been specified in, or prescribed or notified under the specified Act for payment of any amount towards tax or levy, which falls during the period from March 20, 2020 to June 29, 2020 or such other dated after June 29, 2020, but not paid within such date, then such payment should be made before June 30, 2020 or such other date after June 30, 2020 as the Central Government may, by notification, specify in this behalf, at the rate given below:

a)       The rate of interest payable, if any, in respect of such amount for the period of delay will not exceed three-fourth per cent. For every month or part thereof;

b)      No penalty will be levied and no prosecution will be sanctioned in respect of such amount for the period of delay.

Ø  Amendment to the Income-tax Act, 1961

With effect from April 01, 2020:

In section 10 (23C)(i) which specifies income not included in total income and section 80G(2)(a)(iiia) which specifies deduction in respect of donations to certain funds, charitable institutions etc.,, after the word “Fund” the words and brackets “or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND) will be inserted;

Ø  Amendment to the Direct Tax Vivad se Vishwas

Under section 3 which specifies the amount payable by declarant, Headings date has been changed, namely:

1)      Amount payable under this Act on or before the June 30, 2020 has been inserted instead of March 31, 2020.

2)      Amount payable under this Act on or before the July 02, 2020 instead of April 01, 2020.

Ø  Relaxation of time limit under certain Indirect Tax Laws - Central Excise Act, 1944; Customs Act, 1962; Tariff Act, 1975 and Finance Act, 1994:

The time limit specified in, or prescribed or notified under the above mentioned Acts which falls during the period from March 20, 2020 to June 29, 2020 or such other date after June 29, 2020, for completion or compliance of various actions, stands extended to June 30, 2020 or such other date after June 30, 2020 as the Central Government may, by Notification specify.

Ø  Amendment to the Finance Act (No.2), 2019

Section 127 which specifies procedure for issue of statement by designated committee:

1)      Sub-section 1: Where the amount estimated to be payable by the declarant, as estimated by the designated committee, equals the amount declared by the declarant, then, the designated committee shall issue in electronic form, a statement, indicating the amount payable by the declarant, on or before May 31, 2020.

2)      Sub-section 2: Where the amount estimated to be payable by the declarant, as estimated by the designated committee, exceeds the amount declared by the declarant, then, the designated committee shall issue in electronic form, an estimate of the amount payable by the declarant May 01, 2020.

3)      Sub-section 4: After hearing the declarant, a statement in electronic form indicating the amount payable by the declarant, shall be issued on or before May 31, 2020.

4)      Sub-section 5: The declarant shall pay electronically through internet banking, the amount payable as indicated in the statement issued by the designated committee, on or before June 30, 2020.

Ø  Amendment to the Central Goods and Services Tax Act, 2017

Section 168A has been inserted: Power of Government to extend time limit in special circumstances

Save as otherwise provided, it will come into force at once.

[Ordinance No. 2 of 2020]


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